Environmental Changes Affect Florida’s Real Estate Investment Market

In recent years, events have made Florida and its legislature more aware of the importance of environmental regulation in their state. This has affected many different areas of the law, up to and including real estate, and the market has reflected this trend. Nowadays, ‘eco-friendly’ homes are becoming more and more prized by buyers and investors for a variety of reasons – but there are some regulations every investor must follow.

Sustainability Is Trendy

Historically, Florida had been very happy to sweep environmental issues under the proverbial rug, but after the 2021 condo tower collapse in Surfside, the legislature seemed to become more aware of the possibility of environmental problems, particularly involving real estate. For example, more and more oceanfront properties are having erosion issues, subsidence (sinking land) and the state as a whole is experiencing temperatures that make storms far more destructive than they used to be.

As a result of this crisis, Florida’s legislature passed new requirements for both buyers and renters. While some of these can be expensive or time-consuming, data shows that at least for some, it can ultimately be worth it. Eco-friendly homes are ‘trendy’ now, but this is no mere social pattern; rather, people are willing to pay more for eco-friendly homes and fixtures. As a result, both visitors and investors in real estate can benefit – the more sustainable a home is, the more it will pay for itself.

Minimize The Risk

While there are more and more swathes of oceanfront property that are becoming unsafe to inhabit, it is possible in many cases to minimize the risk of subsidence or erosion as much as possible. An ethical investor in this day and age (as well as an investor who is interested in making money!) will at least investigate outfitting a home in Florida with all the most eco-friendly systems, as well as performing the correct surveys and inspections before buying it or selling it.

Even if you choose not to make a property eco-friendly, keep in mind that there are still disclosures that a seller must make in Florida before a purchase and sale agreement is final. For example, if there is an issue that will materially affect the value of the property, a seller must make the buyer aware of that if there is no way the buyer could have found out by themselves. An investor must be able to account for any issues with the property, from a leaking roof to an inefficient air conditioner.

Contact A Tampa Real Estate Investment Attorney

If you are looking to invest in Florida, being aware of its changing environment and the laws passed to regulate it is imperative. A Tampa real estate investment attorney from the Seward Law Office can help answer any questions you may have about making environmental regulations work for you. Call our office today to schedule a consultation.

Source:

nist.gov/disaster-failure-studies/champlain-towers-south-collapse